Michael Haneke's Oscar-tipped, Palme D'Or-winning Amour may be the most high-profile film of 2012 from an Austrian film-maker, but it will not be featuring in the annual Austrian film awards. Haneke has decided not to enter his French-language drama about an elderly couple dealing with the aftermath of a devastating stroke after being told it would not be eligible for several top categories.

Amour is Austria's entry for the Academy Award for best foreign-language film, where it is expected to be one of the frontrunners. But because it is filmed in French and does not meet other required criteria (including an Austrian certificate of origin, delegate producer and evidence of "significant Austrian cultural influence") it would only have been considered for directing, screenplay and editing prizes by the AFA.

Haneke is said to have decided to withdraw his film altogether upon hearing the news. Surprisingly, the move is not being described as the result of a fit of pique: instead, the film-maker has been praised for allowing other local movies a better chance of recognition. AFA managing director Marlene Ropac told Screen Daily that Haneke's decision had been considered "a very noble gesture" by his film-making peers.

In a letter to the AFA, Haneke's producer, Veit Heiduschka of Wega Film, explained: "He is of the opinion that the Austrian film awards will help other Austrian directors realise future films more than would be the case with him. Without vilifying the Austrian film awards, he refers to the fact that he has already been honoured internationally for this film, and another Austrian film should have the chance to be honoured."

Amour took best picture, best director, best actor and best actress at the European film awards last month and has picked up prizes from critics bodies in LA, San Francisco, Boston and New York. Early signs suggest it could yet break out of the foreign-language film "ghetto" at next year's Oscars to be a contender in mainstream categories.

In its absence the AFA could garland Florian Flicker's Grenzgänger, which picked up the highest number of nominations – seven – for the forthcoming awards. It is in the running for best feature film, best director, best actor, best cinematography, best score and best film editing. Also tipped for success is Ulrich Seidl's Paradise: Love, the first part of an intended trilogy of films, which has six nods. The AFA ceremony will take place in the ceremonial hall of Vienna's Rathaus on 23 January.